Compensation for false imprisonment too low, appeal judges rule

The victim of one of Britain's most notorious miscarriage of justice cases won a ruling in the court of appeal today over the compensation he received for being falsely imprisoned. The case will have ramifications for others who have complained that they have been inadequately compensated for years spent in prison for crimes they did not commit.

In a unanimous judgment, the court of appeal quashed, as "irrationally low", the award of £55,000 for loss of liberty awarded to Stephen Miller, one of the so-called Cardiff Three, by the independent assessor, Lord Brennan.

Miller, then 24, was jailed for life at Swansea crown court in 1990 for the 1988 murder of Lynette White, who had been stabbed more than 50 times. He was released on appeal in 1992 after spending a total of four years and one month in prison.

The real murderer, Jeffrey Gafoor, was jailed in 2003 after pleading guilty. Thirteen former and serving members of South Wales police have been charged with conspiracy to pervert the course of justice as a result of the case and are due to stand trial next year.

Today the court of appeal ruled that the independent assessor, who operates under the auspices of the Ministry of Justice, had "erred in law" in awarding only £55,000 for the "loss of liberty and the consequences of imprisonment".

In the judgment, which upheld Miller's appeal against the dismissal of his request for a judicial review, Lord Brennan was instructed to "re-assess his award". Sir Paul Kennedy, giving the judgment, stated: "I do not see how £55,000 could possibly be sufficient for a period of incarceration of over four years which was unlawful from start to finish."

The decision was welcomed by Miller and his lawyer, Matthew Gold. "The judgment is an important decision for the victims of miscarriages of justice," said Gold. "The judiciary has said how awards for loss of liberty should be assessed. The assessor is now bound to have proper regard to other civil law awards for false imprisonment. This should result in an increase in the amounts of the awards made."

Miller said he was happy with the ruling. "I have always said that the award of £55,000 for four years' loss of my life is far too low," he said. "I am very hopeful that the assessor will award a much larger amount. I want to thank the judges for allowing my appeal and giving a fair judgment. I now want to be able to put this episode behind me and get on with my life".

A Ministry of Justice spokesperson said: "Ministers decide whether an individual is eligible for compensation following a miscarriage of justice. If approved, the independent assessor then decides the amount to be paid. This judicial review was against one element of the independent assessor's award and we understand he is seeking to appeal the judgment."

Miller, who was wrongly convicted alongside Tony Paris and Yusef Abdullahi, suffered severe psychiatric damage as a result of the case, for which he has been compensated separately, and is now living in south London where he grew up. Earlier this year told the Guardian how his life has changed. "I was very sociable before. Now I find it too stressful to go out."

In Wormwood Scrubs, he had considered killing himself and found it hard that anyone could imagine that he would have carried out such a horrific crime. Before the case he had hoped for a career in the building trade, but he has been unable to work since.

In the past the assessment system has been challenged over the deduction of "board and lodging" costs from compensation for people wrongly imprisoned.